Berkshire hiked its bet after billionaire John Malone’s Liberty Media completed its deal in early September to combine its tracking stocks with the rest of the audio entertainment company. It was part of Malone’s reshuffling of his sprawling media empire that also included a split-off of the Atlanta Braves baseball team into a separate, publicly traded company, which Berkshire also owns.
Buffett’s firm first bought Liberty Media’s trackers in 2016 and started piling into Siri’s tracking stocks in the beginning of 2024 after the deal announcement in a likely merger arbitrage play.
The 94-year-old has never mentioned the bet publicly, and it’s unclear if he’s behind it or if it’s the work of the billionaire’s investing lieutenants, either Ted Weschler or Todd Combs.
Not well loved
SiriusXM, which has been grappling with subscriber losses and unfavorable demographic shifts, is not a popular stock on Wall Street. Out of the 14 analysts covering the stock, only five gave it a buy rating, according to FactSet.
JPMorgan analyst Sebastiano Petti reopened coverage of SiriusXM with an underweight rating last week, citing concerns about the radio giant’s long-term growth and its ability to successfully target a broader demographic.
Meanwhile, the Liberty transaction, which reduced share count by 12%, could cause the company to pause share buybacks until 2027, which will likely weigh on shares, the analyst said.
SiriusXM
The stock popped 8% on Monday on Berkshire’s disclosure. However, shares are still down more than 50% this year.
The last time Berkshire invested significantly in a major media company was in 2022, when the conglomerate bought a nonvoting stake in Paramount Global‘s class B shares. The investment soured quickly. Buffett revealed in May this year that he had exited the entire stock at a big loss.
Buffett said the unfruitful Paramount bet made him think more deeply about what people prioritize in their leisure time. He previously said the streaming industry has too many players seeking viewer dollars, causing a stiff price war.
Check out the companies making headlines in midday trading: UnitedHealth — Shares plunged 7.2% after the health-care giant lowered its earnings guidance due to ongoing headwinds from a cyberattack earlier in the year. UnitedHealth cut the top end of its full-year earnings forecast, which is now $27.50 to $27.75 per share, compared to previous guidance of $27.50 to $28.00 per share. UnitedHealth still reported a top- and bottom-line beat in the third quarter. Walgreens Boots Alliance — The stock soared 11.9% following the drugstore chain’s fiscal fourth-quarter earnings and revenue beat. Walgreens also plans to close about 1,200 stores over the next three years, which will be “immediately accretive” to its adjusted earnings and cash flow, the company said. ASML — Shares dropped more than 16% after the Dutch semiconductor equipment maker released its earnings report early and offered a weaker-than-expected sales outlook for 2025. The company’s CEO also warned of a “more gradual” recovery ahead. Other chip stocks fell as well, with Nvidia , Advanced Micro Devices and Broadcom last down at least 4% each. Wolfspeed — Shares popped 23% on news that the North Carolina-based chipmaker will obtain up to $750 million in U.S. government grants for its new factories in North Carolina and New York. A group of investors including Apollo and Baupost will provide an additional $750 million in funding for its more than $6 billion plan. Bank of America — The lender saw shares gain 2% after it exceeded analysts’ estimates for third-quarter profit and revenue on better-than-expected trading results. Net interest income, one of the key ways that banks make money, fell 2.9% to $14.1 billion, edging out the $14.06 billion StreetAccount estimate. Enphase Energy — Shares slid 6.8% on the back of a downgrade to sector perform from outperform by RBC Capital Markets. The firm said Enphase should grow at a slower rate than the consensus forecast pencils in. Johnson & Johnson — The health-care conglomerate gained 1.6% after posting quarterly results that exceeded expectations on the back of strong sales of oncology drugs. Johnson & Johnson reported adjusted earnings per share of $2.42 and $22.47 billion in revenue. Meanwhile, analysts surveyed by LSEG had forecast $2.21 in earnings per share on $22.16 billion in revenue. The firm also raised guidance for its 2024 profit and sales. Energy stocks — Energy stocks declined as oil prices dropped about 5% , with the sector last down more than 2%. APA was the biggest laggard, tumbling 6%. Diamondback Energy tanked 4.3%, while Occidental Petroleum , Valero Energy and Halliburton lost more than 3% each. Coty — The CoverGirl parent plunged 11% after trimming its fiscal first-quarter guidance and warning of slower growth trends in the U.S. Citigroup — Shares lost about 4% despite stronger-than-expected third-quarter earnings . The bank posted earnings per share of $1.51 on $20.32 billion in revenue. Analysts polled by LSEG had anticipated earnings of $1.31 per share on revenue of $19.48 billion. Charles Schwab — Shares of the brokerage company rallied more than 8% as third-quarter results topped analysts’ expectations. The company posted earnings of 77 cents, excluding one-time items, on $4.85 billion in revenue. PNC Financial — The Pittsburgh-based regional bank rose more than 3% on a better-than-expected earnings report. Earnings came in at $3.49, topping an LSEG estimate of $3.30 per share. The company reported $5.43 billion in revenue, topping a forecast of $5.39 billion. Boeing — Shares added about 2.1% after the aircraft manufacturer said it could raise up to $25 billion in debt and shares to increase liquidity. — CNBC’s Yun Li, Alex Harring, Hakyung Kim, Michelle Fox, Pia Singh, Sarah Min contributed reporting.
Check out the companies making headlines before the bell. Bank of America — Shares moved 1% higher after third-quarter earnings and revenue topped Wall Street analysts’ estimates. Earnings came in at 81 cents, beating the 77 cents expected from analysts polled by LSEG. Revenue was $25.5 billion, versus the $25.3 billion consensus estimate. Johnson & Johnson – The healthcare conglomerate saw shares rising slightly premarket after quarterly results exceeded expectations on the back of strong sales of oncology drugs. J & J also raised forward financial guidance for full-year 2024 profit and sales. Goldman Sachs — Shares of the investment bank jumped more than 2% on better-than-expected quarterly earnings. Goldman Sachs posted earnings per share of $8.40 on $12.70 billion in revenue. Analysts surveyed by LSEG had forecast $6.89 earnings per share on $11.80 billion in revenue. Goldman’s trading and investment banking segments boosted results. UnitedHealth Group — The healthcare stock declined 3.2% despite posting a top and bottom-line beat in the third quarter. The company lowered its earnings guidance due to ongoing headwinds from a cyberattack earlier in the year. UnitedHealth cut the top end of its full-year earnings forecast, now $27.50 to $27.75 per share versus $27.50 to $28 previously. Walgreens Boots Alliance — The retail drugstore chain jumped 5% after fiscal fourth-quarter sales and profit exceeded analysts’ expectations. Walgreens also said it plans to close roughly 1,200 stores over the next three years, which it said should increase adjusted earnings and free cash flow and help cut costs. Citigroup — Shares of the Jane Fraser-led bank added 1.7% after third-quarter earnings and revenue were better than consensus estimates. Citigroup posted earnings per share of $1.51 on $20.32 billion in revenue, while analysts surveyed by LSEG had expected earnings per share of $1.31 on revenue of $19.48 billion. PNC Financial — The Pittsburgh-based regional bank added 0.8% premarket. PNC reported earnings per share of $3.49, topping estimates of $3.30 per share, according to analysts polled by LSEG. Revenue of $5.43 billion also beat forecasts of $5.39 billion. Etsy — Shares tumbled more than 5% after Goldman Sachs downgraded the online marketplace to sell from neutral. The investment bank highlighted the risk of compressed profit margins and continued market share losses. Coty – Shares fell 4% after the beauty company warned of a slower U.S. market in preliminary fiscal first-quarter results. Coty now expects comparable revenue to rise between 4% and 5%, down from prior guidance of 6% growth. Charles Schwab — The brokerage company surged more than 7% after third quarter results beat analysts’ estimates. Charles Schwab reported 77 cents in earnings per share excluding one-time items, on $4.85 billion in revenue. Analysts had estimated 75 cents earnings per share and revenue of $4.78 billion, per LSEG. Revenue grew 5% from the prior quarter on sustained investor engagement. The company’s wealth advisory division reported record year-to-date inflows. Enphase Energy — Shares fell 1.8% after RBC Capital Markets downgraded the maker of solar micro-inverters and EV charging stations to sector perform from outperform, expecting a “slower pace of growth next year not reflected in current consensus estimates.” Enphase, which also makes battery storage units, is down more than 20% this year. — CNBC’s Yun Li, Michelle Fox, Samantha Subin, Sarah Min and Pia Singh contributed reporting
The Citibank building in Canada Square at the heart of Canary Wharf financial district in London on May 7, 2024.
Mike Kemp | In Pictures | Getty Images
Citigroup is set to report its third-quarter earnings before the opening bell on Tuesday, as investors will get the latest updates about the progress of CEO Jane Fraser’s turnaround plan.
Here are the results expected by Wall Street analysts, according to LSEG.
Earnings per share: $1.31
Revenue: $19.84 billion
Fraser took over in March 2021 and has focused on slimming down the bank during her tenure. That includes reducing Citigroup’s globalpresence and laying off workers.
Investment banking and equities trading were two bright spots for the bank in its second-quarter earnings report, released in July.
Shares of Citigroup were up more than 28% year to date through Monday, outperforming both the S&P 500 and the financial sector.